Following the introduction of Legal Notice 231 of 2023, the Malta Tax and Customs Administration (MTCA) has today published Guidelines on the special 12% VAT rate applicable to the hiring of pleasure yachts.

The 12% VAT rate, which came into effect on 1 January 2024, applies to several services, including the hiring of a pleasure yacht subject to a number of conditions. The Guidelines provide several hypothetical examples to determine whether a hiring of a pleasure yacht is entitled to the special 12% VAT rate.

Our Tax and VAT Compliance teams are available to provide guidance.

The Guidelines may be accessed on the following link: Guidelines – 12 percent VAT on pleasure boats.pdf (gov.mt)